Japanese, U.S. firms win RI power projects

Japanese, U.S. firms win RI power projects

TOKYO (AFP): Japan's Mitsui and Co. Ltd. and Toyo Engineering Corp. and two companies from the United States have won a 1.8 billion dollar order to build two thermal power stations in Indonesia, a Mitsui official said yesterday.

The official said the contract, which includes Fluor Daniel Corp. and Mission Energy Co., is expected to be formally concluded around the middle of February with the joint venture which is carrying out the power plant project.

The joint venture, PT Paiton Energy Co., includes both Mitsui and Mission Energy along with an a subsidiary of General Electric Co. of the United States and Indonesia's PT Batu Hitam Perkasa.

The overall project is expected to cost US$2.6 billion, including $600 million to capitalize Paiton Energy, the official said.

The remaining $2 billion is expected to be funded by a syndicated loan from eight U.S., European and Japanese banks, including the U.S. and Japanese export-import banks and Industrial Bank of Japan Ltd., he said.

The venture will own and operate the Paiton thermal power plant for 30 years.

Financial arrangements are planned to be completed by Feb. 15, the official added. But he declined to confirm a Nihon Keizai Shimbun report that Toyo Engineering alone is expected to win about $600 million in orders.